JIMENEZ, SOPHIA AUDREY M.

BSBA_OM I701

MARKETING MANAGEMENT

08 Review 2 - ARG

Instructions

Answer the question in no more than five (5) sentences. (2 items x 5 points)

1. Why would the strategy for setting a product’s price change when a product is part
of a product mix?

ANSWER:

When a product is part of a product mix, the pricing strategy must frequently be modified. In this
situation, the corporation seeks pricing that maximize its overall earnings from the product mix.
Pricing is problematic since different items have different demands and costs, as well as variable
levels of competition.

2. Why is finding and implementing the right pricing strategy critical to a company’s
success?

ANSWER:

Finding and implementing the best pricing plan is critical to the company's success since it
governs and influences business flow and operations. Because sales are one of the factors used to
measure the company's performance at the end of the day, it is the foundation of all profit and
ROI in a corporation. Pricing is important because it sets the worth of your products and services
for you to create as well as for your customers to buy and use. Pricing is the actual price point
that tells purchasers whether it is worth their time and effort, in addition to being part of the
marketing mix (which comprises Product, Price, Place, and Promotion). Pricing strategies may
have an impact on your overall profitability in the future.